The Jackson–Timberlake Wardrobe Co. has just paid a dividend of $1.60 per share on its stock. Dividends are expected to grow at a constant rate of 6 percent per year indefinitely. Investors require a 10 percent return on the company's stock. What is the current price of the shares? What will the stock price be three years from now? What will the stock price be in 12 years?

Answer rating: 100% (QA)

To determine the current price of the shares we can use the Gordon Growth Mo... View the full answer